Research Article
Factors Affecting the Production Value of Large and Medium Manufacturing Industries in West Java Province from 2017 to 2020
@INPROCEEDINGS{10.4108/eai.3-10-2024.2356253, author={Sekar Ayu Wandira and Andika Pambudi and Hari Nugroho and Rico Ricardo}, title={Factors Affecting the Production Value of Large and Medium Manufacturing Industries in West Java Province from 2017 to 2020}, proceedings={Proceedings of the 3rd International Conference on Contemporary Risk Studies, ICONIC-RS 2024, 3 October 2024, Surakarta, Indonesia}, publisher={EAI}, proceedings_a={ICONIC-RS}, year={2025}, month={9}, keywords={production value; panel data; manufacturing industry; west java; production factors}, doi={10.4108/eai.3-10-2024.2356253} }- Sekar Ayu Wandira
Andika Pambudi
Hari Nugroho
Rico Ricardo
Year: 2025
Factors Affecting the Production Value of Large and Medium Manufacturing Industries in West Java Province from 2017 to 2020
ICONIC-RS
EAI
DOI: 10.4108/eai.3-10-2024.2356253
Abstract
Industrialization plays an important role in driving national economic growth, with West Java as a province that holds a dominant role in this sector. However, the contribution of West Java's manufacturing industry has declined. This study analyzes the factors affecting manufacturing production in 27 districts/cities in West Java from 2017 to 2020, using panel data regression methods. The results show that capital, raw materials, and labor have a significant and positive impact on manufacturing production, while labor wages have a significant but negative effect. Inflation does not have a significant impact on production. Based on these findings, it is recommended that the government implement regulations related to raw materials by strengthening bilateral cooperation with supplier countries to minimize the impact of exchange rate fluctuations that could disrupt raw material imports.
